An alleged leader of Italy's feared 'Ndrangheta mafia was arrested by police after being found hiding in a hi-tech underground bunker accessible only via a remote-controlled trap door.

Armed Carabinieri officers found Francesco Pesce, one of the country's most wanted fugitives, living a comfortable existence in the air-conditioned bunker, which consisted of a bedroom, bathroom and kitchen.

It was concealed beneath a junkyard near the town of Rosarno, in Calabria, the 'toe' of the Italian boot and the heartland of the 'Ndrangheta, which has grown immensely rich in recent years from drug trafficking, in particular cocaine.

The 40 square metre bunker was equipped with two televisions, internet access and a sophisticated video surveillance system of 16 closed circuit cameras which enabled the alleged mafia don to monitor anybody approaching the location.

Despite having to live like a mole, Pesce spared himself few comforts – the kitchen was packed with bottles of Champagne and expensive wines, locally-produced goats' cheese, salamis and prosciutto ham.

The hideout was accessed through a 3ft-high concealed trap door next to a chicken coop.

Antonio Pronesti, 44, who runs a demolition business and owns the junkyard, was also arrested and is expected to be charged with helping to conceal Pesce.

The 31-year-old, nicknamed in the local Calabrian dialect "Ciccio the Fat Head", is believed to have been living in the bunker since May 2010, when he went on the run after police launched a crackdown on the Ndrangheta in the Rosarno area.

"I've become famous," he said as he was marched by officers down the steps of a police station before being taken to jail and remanded in custody.

He is accused of drug dealing, money laundering, criminal association and other charges.

During the raid he tried to burn papers and encoded notes in his possession but police managed to grab them and were analysing them for potential leads to other 'Ndrangheta criminals.

He was arrested in the early hours of Wednesday but details of his hideout were only released by police yesterday (thurs).

Anti-mafia officers suspected the existence of the bunker after intercepting telephone calls between gang members and following their vehicles.

They turned up at the property with a bulldozer and began demolishing the site in search of the hideout.

The sound of the machine – and the apparent fear of being burned alive – convinced Pesce to give himself up, although not before trying to burn evidence.

"It's a severe blow to the 'Ndrangheta and a success of the highest level, thanks to the hard work of the police and the judiciary," said Roberto Maroni, the interior minister.

Giuseppe Pignatone, the chief prosecutor in the nearby city of Reggio Calabria, said that despite being forced to live underground, Pesce remained "the active head of the clan." Piero Grasso, Italy's chief anti-mafia prosecutor, warned that Italy's four mafia organisations – the 'Ndrangheta, Cosa Nostra in Sicily, the Camorra of Campania and the lesser-known Sacra Corona Unita in Puglia – are profiting from the economic crisis in Europe.

"In times of acute crisis, like now, the influence of dirty money in the economy is even greater," he said.

"Whoever has liquidity has great power in the market because they can buy up businesses and commercial activities that are suffering the consequences of the economic crisis." The four mafia organisations, all traditionally based in the south of Italy, were constantly extending their interests in the wealthy north of the country.

"It's very dangerous to pretend that the problem only concerns the south," he said.